You have a CPIF contract with a target cost of $3,125,000 and a target fee of $156,250. The associated clause states… “(e) Fee payable (1) The fee payable under this contract shall be the target fee increased by 15 cents for every dollar that the total allowable cost is less than the target cost or decreased by 20 cents for every dollar that the total allowable cost exceeds the target cost. In no event shall the fee be greater than 7 percent or less than 2 percent of the target cost.” Given a final cost of $2,750,000 determine the final fee and the final contract funding.. Single choice.

You have a CPIF contract with a target cost of $3,125,000 and a target fee of $156,250. The associated clause states… “(e) Fee payable (1) The fee payable under this contract shall be the target fee increased by 15 cents for every dollar that the total allowable cost is less than the target cost or decreased by 20 cents for every dollar that the total allowable cost exceeds the target cost. In no event shall the fee be greater than 7 percent or less than 2 percent of the target cost.” Given a final cost of $2,750,000 determine the final fee and the final contract funding.. Single choice.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 13E: On March 1, 2019, Elkhart enters into a new contract to build a specialized warehouse for 7 million....

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